Most metro cities have seen rapid urban growth over the past decades. However, these cities have also become saturated markets for new real estate developments due to reduced availability of land. With housing demand continuing to rise in these cities, property prices have risen substantially. As a result, these cities are witnessing the growth of suburban areas and new satellite cities to meet the growing housing demand. Bangalore is one example of rapid urban growth, driven by population growth and the massive influx of people seeking jobs. The boom of IT sector has led to this development on a large scale. The emergence of IT hubs in the city’s peripheral areas and outskirts has steered real estate growth. These developing areas promise affordability and future growth potential for buyers and investors alike. In this guide, we discuss why it is a good idea to buy a property in the outskirts of Bangalore city outskirts.
Bangalore real estate overview
Bangalore is among the fastest-growing cities in the world and is also known as the tech capital of India. It is home to some of the top technology companies and several start-ups. In addition, other industries, such as fintech and reputable educational institutions, contribute to the city’s economic growth. Every year, the city draws people from other parts of the country for jobs and education. These factors have contributed to the increased demand for real estate in Bangalore.
North Bangalore, especially areas near the Bangalore Airport, and East Bangalore localities such as Whitefield and KR Puram are emerging growth corridors of Bangalore. This is supported by the infrastructure expansion, such as the Bangalore Metro extension and Bangalore Chennai expressway. The infrastructure-led growth and emergence of IT-ITeS companies have led to the rise of new micro-markets. Property prices have risen in recent months, driven by increased demand.
Why buying a property in Bangalore’s outskirts a good investment?
Affordable for entry-level investors: Purchasing a home in these emerging markets is significantly more affordable than investing in core city areas. Property prices in city suburbs are much lower than in city centre. There are ample options for budget-conscious buyers, reducing initial investment costs. So, first-time buyers and entry-level property investors can find good opportunities in these markets.
Diverse property options: Unlike the city areas, these emerging suburbs have land availability. So, plotted developments are among the sought-after options for property buyers. Many developers are coming up with township projects with diverse property options. There are gated projects offering apartments, independent houses, and villas, allowing homebuyers to choose the option that best suits their needs. With amenities and green spaces, these gated communities focus on meeting the modern lifestyle needs of homebuyers.
Moreover, senior living communities, a niche segment of Indian real estate, are expanding in key cities such as Bangalore and attracting the attention of retired individuals and NRI investors.
Rental and co-living spaces: The influx of the working population into the city has driven the growth of these spaces. Compact homes in gated communities and co-living spaces by prominent developers are catering to this rising rental demand.
Upcoming infrastructure: Key infrastructure developments such as the Bangalore Business Corridor (BBC) (earlier known as the Peripheral Ring Road (PRR)), Satellite Town Ring Road (STRR), Bangalore Chennai Expressway and Bangalore Pune Expressway are being developed to reduce road congestion and boost regional connectivity. Besides these projects, upcoming Bangalore Metro projects and the airport metro link are expected to further ease commuting and pave the way for real estate developments, resulting in an increase in property values.
Long-term appreciation: The expansion of the suburbs in Bangalore, supported by rapidly developing infrastructure, is expected to drive long-term growth for property investors. As these projects progress rapidly, the real estate market is expected to see positive developments, and properties will see price appreciation in the future. So, the market in the Bangalore outskirts is highly favourable for real estate buyers.
Top localities to invest in Bangalore outskirts
#1. Whitefield
A popular IT hub in eastern Bangalore, Whitefield has numerous IT parks and high-quality social infrastructure. The Namma Metro Purple line offers connectivity to this locality. It is a well-developed residential destination, offering numerous housing options for families and working professionals.
#2. Electronic City
Electronic City is a thriving technology hub in South Bangalore. Besides corporate offices, there are reputed educational institutes, healthcare facilities, and other social infrastructure, ensuring a comfortable lifestyle for residents. The area is also expected to get metro connectivity under Namma Metro Phase 2.
#3. Sarjapur Road
Sarjapur Road is a prominent residential hotspot in southeastern Bangalore. The locality is rapidly developing and enjoys good connectivity with Electronic City and Whitefield. The area is well connected via arterial roads and will have an upcoming metro link. There are popular IT hubs in Outer Ring Road (ORR) nearby, providing housing options for those working nearby.
#4. Yelahanka
Yelahanka is a suburb in northern Bangalore located close to the Kempegowda International Airport. The locality has a well-developed physical and social infrastructure with upcoming metro connectivity. The IT corridor along the ORR is well-connected to this area. Yelahanka is suitable for working professionals and frequent travellers looking for short-term rentals.
#5. Hebbal
Hebbal is another fast-growing locality in North Bangalore, with good road connectivity via Bellary Road, ORR (NH 44), and the Hebbal Flyover. Major IT and ITeS companies are in the vicinity, making this location an ideal choice for working professionals. Social infrastructure is well developed, comprising schools, healthcare facilities, and malls.
#6. Bannerghatta Road
Bannerghatta Road is an emerging locality in South Bangalore with strong connectivity via road and Metro. Social infrastructure facilities such as supermarkets, schools, and hospitals are available. There are bustling industries and technology companies nearby, which attract many office goers to this area.
#7. Devanahalli
Devanahalli is a residential locality close to the Kempegowda International Airport in northeast Bangalore. The strategic location makes Devanahalli a favourable choice for property investors. The upcoming metro line is expected to ease connectivity to this locality. There are social infrastructural facilities and employment hubs in the vicinity, including the KIADB IT Park.
#8. HSR Layout
HSR Layout is a suburb in southeastern Bangalore and a prominent real estate destination. There are bustling commercial hubs and essential facilities, such as schools, supermarkets, and medical facilities. HSR Layout is strategically located along the ORR and Hosur Road, ensuring easy access to Electronic City and to other areas such as Marathalli, Koramangala, Sarjapur Road and Hosur Road. It has good road connectivity via ORR, Hosur Road and Sarjapur Road and is expected to get a metro link.
Property prices in Bangalore
| Locality | Average property price (in Rs per sqft) | Average rental rates (Rs per month) |
| Whitefield | Rs 12,112 | Rs 40,000 |
| Electronic City | Rs 7,500 | Rs 30,000 |
| Sarjapur Road | Rs 10,000 | Rs 42,000 |
| Yelahanka | Rs 11,000 | Rs 33,700 |
| Hebbal | Rs 8,852 | Rs 30,000 |
| Bannerghatta Road | Rs 13,670 | Rs 25,900 |
| Devanahalli | Rs 9,299 | Rs 31,600 |
| HSR Layout | Rs 12,280 | Rs 43,400 |
Factors to consider before investing in Bangalore outskirts
- Legal due diligence: This is important for any property investor as it helps safeguard against potential legal hassles. The process involves verifying property titles and ownership history, and ensuring that RERA registration and necessary approvals are in place.
- Infrastructure delays and slow-growth pockets: Those planning to buy property in developing areas must be cautious about factors such as infrastructure delays that can impact the areas’ growth prospects. So, before you buy a home, check whether basic infrastructure is in place and whether facilities like schools, hospitals, etc. are easily accessible.
- Connectivity: If you are buying a property for end-use, make sure to check for good public transportation and access to arterial roads. Checking for proximity to workplace and colleges is a point worth considering for home seekers.
- Budget: Before investing in a project, make sure to evaluate your budget and housing needs. It is also crucial to factor in hidden costs of property purchases, such as stamp duty and registration charges, broker’s fees, moving-in costs, etc.
Housing News POV
The emerging suburbs of Bangalore offer attractive opportunities for homebuyers and early-stage property investors. The key aspects of this growing real estate market include affordability, future growth potential and projects that cater to new-age lifestyle needs of buyers. Another noteworthy aspect is the expansion of infrastructure, especially roads and the Namma Metro network, aimed at enhancing connectivity between the far-flung areas and the city’s core. There are many budget-friendly property options for first-time buyers and other home seekers, including seniors and NRIs. Moreover, the steady influx of working professionals ensures a constant demand for rented homes. So, investment in Bangalore’s outskirts is an undeniably profitable prospect for property buyers as these micro-markets are expected to see more developments and transformation into self-sufficient townships.
FAQs
Is it good to invest in the outskirts of Bangalore?
Yes. Several suburbs of Bangalore are emerging as promising real estate destinations. These areas are witnessing rapid infrastructure expansion, signalling potential for long-term price appreciation.
Are property prices in Bangalore’s outskirts likely to appreciate in the future?
Yes. Property prices in Bangalore’s outskirts are expected to appreciate in the future owing to ongoing infrastructure development, the growth of employment hubs, and the emergence of townships.